EMPIRE COMMUNICATIONS.

Taranaki Daily News, 2 August 1930, Page 8

EMPIRE COMMUNICATIONS.

These who’ questioned the wisdom. of transferring the publicly-owned Pacific cable to the organisation known as Imperial and International Communications, Ltd., will feel that their doubts were justified. The amalgamation of cable and wireless telegraphic services was insisted upon by those in control of existing cable lines if undue competition was io be eliminated, and the investors in cable lines were to be protected. It was thought that co-ordina-tion of the two branches of telegraphy would prevent waste and overlapping and would enable cable or wireless to be used as seemed most desirable to customers; That increased profits were also anticipated was manifested in the safeguards insisted upon by the Governments owning the Pacific cable, of which New Zealand was one, before agreeing to transfer the cable to the privately owned organisation! It was stipulated that when a reasonable dividend had been earned for shareholders a portion of any balance of profits must be used to reduce charges to the public, and there was also to be public representation on the directorate. Unfortunately so far from extra profits accruing the volume of business shews a most untoward diminution. Traffic receipts for the first six months of tills year are over £300,000 below those of the corresponding period last year. It may be a reflection of the economic depression that is world-wide at present, but the fact remains that the hope of & reduction in tariff rates from increased profits seems to be receding rapidly. The truth is that the cost of intraEmpire telegraphy is rtill too high for tho development of its use for social purposes. Until “Very much cheaper rates apply there is little likelihood of the general public cultivating this habit. Were it possible to send social and personal messa'-es at the cost of a shilling or two there is no doubt new sources of traffic would be opened. Instead of waiting for increased business to ivarrant a reduction in prices it looks as though reduction should be used as the means of bringing about the greater volume of traffic which is so essential to the 'company’s well being.